Dollar rate drops at official window amid low demand

Authorised dealers sold the United States Dollar (USD) at a reduced rate of N741.50/$1 in the investors’ and exporters’ window of the official market on Monday.

This means they reduced their asking price by N27.75 kobo when compared to the N769.25/$1 the naira to dollar rate closed last week Friday.

While this indicates the naira appreciated in value by 3.60 per cent, during trading, FMDQ Exchange said the dollar had also exchanged at N792/$1, the highest rate of the day, and N696.37/$1, the lowest rate of the day.

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Despite the decline in the price of the dollar offered by authorised dealers, the value of transactions recorded fell by 66.3 per cent.

It shows supply dropped by $174.77 million, as investors and exporters had traded $263.45 million in foreign exchange on Friday, but exchanged $88.68 million on Monday.

In the black market, the naira fell to the dollar, as the cost of the American greenback increased from N764.3/$1 rate to N770.2/$1.

The parallel market’s naira to British pound exchange rate was pegged at an average of N991.5/£1, according to Naira Rates, a black market rate aggregator, which stated that the price rose from N980.9/£1.

Meanwhile, the price of the European currency, the euro, also traded upward, from N843.2/€1, to N851.3/€1 rate.